A Company Has the Following Assets: (1)Fixed Assets Worth $30,000

question 58

Multiple Choice

A company has the following assets: (1) Fixed assets worth $30,000 and (2) investments worth $6,000.The company's total liabilities amount to $25,000.What is the owner's equity of the company?

• A) $24,000
• B) $36,000
• C) $5000
• D) $30,000
• E) $11,000

---

Definitions:

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investment activities.

Sensitivity Analysis

A method employed to understand the effect of varying independent variable values on a specific dependent variable, considering certain assumptions.

Net Present Value (NPV)

The discrepancy between cash inflows' present value and cash outflows' present value during a defined timeframe.

Scenario Approach

A strategic planning method that explores future possibilities by simulating different plausible future outcomes.